The Department said 40 provinces and cities have issued licenses for new FDI projects this year. Binh Duong led with $813.6 million, or almost 15 per cent of the total FDI in the first five months. — Photo benthanhgroup

HCM CITY (Biz Hub) — Some 500 foreign projects with a total registered capital of US$3.67 billion have been licensed so far this year, a 17 per cent decline in investment year-on-year, according to the National Statistics Office.

But Minister for Planning and Investment Bui Quang Vinh said it was not a big concern since in the first five months of 2013 the country had attracted a number of multi-billion dollar projects.

FDI this year would not be very low since investors have been applying for licences for a number of "large" projects, Thoi Bao Kinh Te Viet Nam (Viet Nam Economic Times) newspaper quoted him as saying.

Disbursement by FDI projects this year have amounted to $4.6 billion, a 0.4 per cent year-on-year rise, which indicates confidence in Viet Nam's investment environment and the potential of the country's economy, he said.

He said the confidence was based on the Government's efforts to improve the investment environment through amendments to investment and corporate laws and policies to support foreign firms.

The recent efforts taken by the Government to assist companies affected by the protests against China's placement of its oil rig 981 in Viet Nam's territorial waters also indicate its strong commitment to strengthening the investment environment.

According to the MPI's Foreign Investment Department, exports by foreign companies (including crude oil) in the first five months of 2014 is estimated at $39.45 billion, an increase of 17.1 per cent and accounting for 67 per cent of total exports.

Imports by them cost $32.55 billion, a 11.4 per cent rise and accounting for 57 per cent of the country's total imports.

FIEs' trade surplus during the period was worth $4.46 billion.

The Department said 40 provinces and cities have issued licenses for new FDI projects this year. Binh Duong led with $813.6 million, or almost 15 per cent of the total FDI in the first five months.

HCM City ranked second with $775.6 million and Dong Nai was third with $579.7 million. —VNS